07 Aug 2019

Government is proceeding with the conversion of Botswana Meat Commission (BMC) into a public company under the Companies Act (Cap 42:01).

Presenting the BMC Transition Bill to Parliament on August 6, Minister of Agricultural Development and Food Security, Mr Fidelis Molao, said the bill provided that BMC, which was established under the BMC Act, be registered as a company under the Companies Act.

Mr Molao highlighted that the BMC Transition Bill required the legislating of BMC Transition Act to repeal the existing BMC Act and to provide for incorporation of the BMC as a company limited by shares under the Companies Act to enable its conversion into a company.

Completion of the strategy development, he said, would also repeal BMC Act to eliminate BMC’s monopoly on the export of beef and cattle as well as edible products essentially liberalising the cattle and beef industry.

Minister Molao explained that the process of liberalisation referred to opening the beef industry so that other players particularly the export market would be able to enter the industry and increase competition hence in the process grow the industry.

The process of beef liberalisation and BMC privatisation, he said, would mark the beginning of an important process in the transformation of the beef and cattle sector.

He, however, added that the process would also include establishment of the regulatory institutions such as the meat regulator to ensure transparent and fair trade in the industry.

“This will create an opportunity to develop a healthy cattle and beef industry business with efficient and capable players contributing meaningfully to the economy unlike it is at present,” he said.

Regarding privatisation of the BMC, Minister Molao indicated that privatisation entailed private sector participation in the ownership of BMC, adding that Public Enterprises Evaluation and Privatisation Agency (PEEPA) had commenced the process and was developing a strategy that would inform the mode of privatisation.

He stated that prior studies and consultancies had pointed to the effective liberalisation of the beef industry as a positive move that would enable Botswana to derive maximum benefit from the industry better than the current situation.

The minister pointed out that the beef value chain as mapped by the Beef Transformation Strategy completed last year, demonstrated enhanced production differentiation on value and quality at local, regional and international markets.

Minister Molao further noted that the strategic objectives for the BMC privatisation were, among others, to engage the private sector in the ownership and management of the BMC to achieve operational efficiency and profitability as well as government’s future financial commitments in the entity.ENDS